Just a reminder – if you want to know more about the Local Water Done Well consultation which is open until 30th May – you have 2 chances to attend public meetings this week.

Just a reminder – if you want to know more about the Local Water Done Well consultation which is open until 30^th May – you have 2 chances to attend public meetings this week.

This consultation proposes a new joint Council Controlled Organisation (WSCCO) with the NPDC, Stratford and Hawera which will affect consumers receiving drinking water and wastewater services from these 3 councils.

You are being given 3 options –

• Keep things as they are – in house at the NPDC
• A new CCO company just for the NPDC – like the Airport CCO model
• A new CCO company with all 3 councils. (NPDC, Stratford and Hawera)

There are 2 other options with Consumer Trusts – where you chose the trustees to represent you - the person who pays for the water – but these are not being offered to you. (The Alliance is not totally convinced water users will want this option either, based on more recent investigation which we will update on later).

Things you may want to know more about if you go to a meeting:

The 2 new CCO options being offered add a new committee and/or board level structure.

• Governance of a CCO – the system of controlling the direction and management of an organisation. A council-controlled organisation has extra layers of governance compared to an in-house business unit. (You may want to confirm if this will cost more than the current in house option which does not have a board).
• Iwi participation in governance has been agreed by all councils. See the attached chart to see how Iwi will be represented on a joint committee.
• You may have questions about committee and board structures.

Water and wastewater services currently cost around $75m per year to operate (In New Plymouth).

• The water and wastewater services debt is expected to increase from $266m to $429m over the 10 years of the Long-Term Plan 2024-2034. This may be across all 3 regions.
• For New Plymouth any new debt is to go on top of the $409m the NPDC currently owes, and on top of anything else yet to come, which is already in the LTP.
• There are roughly 37,000 ratepayers in New Plymouth – how on earth will it be possible for New Plymouth Ratepayers to pay their share of an extra $429m in debt. That could be another $150m in debt to be covered from 37,000 households ?
• The extra $150m in debt may instead be paid back through charges through your water meters ? But that would still be new money for households to find for new costs.
• You may want to confirm these facts.
• If the NPDC stays as an in house water unit they can ONLY borrow up to 135% of rates income for all debt they take on. An inhouse model limits how much debt and how much risk ratepayers take on. You may want to confirm this.

How does funding work ?

• Consumers pay water charges to the new CCO (WSCCO). The CCO can borrow up to 500% of its revenue.
• Any loans are guaranteed by shareholding councils – not by water assets.
• The guarantee of the Shareholding Councils (in our case the NPDC) is with the LGFA – all ratepayers across NZ are guaranteeing every other Council pays back their debt.
• If another region’s ratepayers don’t pay – then you – the ratepayers in Taranaki pay their share.
• Most councils across NZ are looking at borrowing hundreds of millions in debt for water. How many councils may not be able to pay back their debt ? Are you happy to pay debt for other council regions if they don’t pay ?
• You may want to have confirmed how LGFA works.
• LGFA is the Local Government Funding Agency Councils prefer to use.

When are the public meetings:

• Wed 21st May – 12 to 1 pm - Puke Ariki (Library) – Drop in Session
• Thurs 22nd May – 5.30 to 6.30 pm – Plymouth Room Civic Centre – Presentation and Questions

P.S

Remember we couldn’t find any trace of upcoming public meetings, but after emailing the Mayor and CEO at the NPDC they advised 2 meetings were planned.

This is your chance to find out what the NPDC are planning for your future with drinking and wastewater.

This is your chance to make an informed choice about whether you want to change from what the NPDC are doing now.